This is an Appeal preferred under section 18 of the SRFAESI Act, 2002 challenging the order passed by the D.R.T. on 30th March, 2010 by which the Appeal filed by the respondent No. 1-Bank under section 17 (1) of the SRFAESI Act, 2002 has been allowed.

The relevant facts for the purpose of deciding the present Appeal are that the respondent No. 3 being the borrower applied for grant of loan with the appel#31;lant-Bank. The same was sanctioned. The respondent No. 3 purchased the said property in the auction sale and the sale-deed was registered in his favour on 13th August, 1997. Since the sale was registered in relation to the property mortgaged with the appellant-Bank, therefore, on the date when the mort#31;gage was created on 3rd October, 2001, he was valid owner of the property. The respondent No. 3 in relation to the same property applied for the loan with the respondent No. 1 -Bank also and created the mortgage on the same property on 6th April, 2002.

2. On the basis of the aforesaid fact, it is clear that the first charge on the property mortgaged was created by the borrower i.e., respondent No. 3 with the appellant-Bank and by mortgaging the same property, the